When considering a two-input production function, one of which is increasing while the other is fixed, at some point called the point of diminishing returns, output will increase at a decreasing rate.

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This statement is correct according to the law of diminishing returns, which states that as more and more units of a variable input are added to a fixed input, the marginal product of the variable input will eventually decrease and output will increase at a decreasing rate.

When Considering a Two-Input Production Function, One of Which Is